MarketWatch reports that General Motors may stop production of minivans that would have been released as early as 2009 under the Chevrolet, Saturn, and other nameplates. Sources told the News that production would stop after GM closes its last minivan producing plant. It will be the first time since 1985 that the car maker will not be offering such vehicles. However, GM has made no official announcement.
Always considered a small player in the minivan market compared to Honda and Chrysler, GM instead will concentrate on crossover vehicles that merge the concept of cars with sports utility vehicles. In fact, the News added, GM will be releasing large crossovers including the GMC Acadia, the Saturn Outlook, and the Buick Enclave. It is believed that these vehicles, which will feature three rows of seats and a V-6 engine, will satisfy the needs provided by minivans.
Ford dropped out of the minivan market earlier this year. The decision resulted in the abandonment of such minivan models as the Ford Freestar and Mercury Monterey. The Monterey is out of production and production of the Freestar is expected to end early next year. Instead, the Detroit News added, Ford will be constructing a new generation family hauler based on the Ford Fairlane concept.
It should be no surprise. General Motors minivans sales have declined nearly 50 percent since 2000. Sales of minivans industry wide has dropped about 20 percent in that time. GM sold about 15 percent to the minivan market in comparison to Chrysler’s 37 percent and Toyota’s 16 percent.
The move, if made officially, is part of a plan to cut annual spending by $9 billion. The new line of crossovers is considered a strong part of GM’s plan to revive its North American auto business after losing $10.6 billion last year, concluded the News.